Bitcoin falls below 108,000 dollars as the market adjusts expectations for cutting down the whales by the Fed.

Bitcoin was sold off in the opening session on May 28 on Wall Street as expectations for cutting down the whales in America continued to be adjusted.

Bitcoin price weakens ahead of Fed interest rate policy forecasts

Data from Bitcoin Magazine reports that BTC has fallen below the threshold of 108,000 USD, hitting its lowest level in several days.

Ahead of the release of the minutes from the Federal Reserve's May meeting, sentiment towards risk assets has become more cautious. CME Group's FedWatch Tool shows that the probability of a rate cut — a key factor driving the value of cryptocurrencies, stocks, and other risk assets — before September is gradually decreasing.

The probability of the Fed's target interest rate for the FOMC meeting in September | Source: CME GroupAt the same time, market sentiment continues to weaken. According to the prediction service Kalshi, expectations for the number of interest rate cuts in 2025 have decreased from four times in early April to only two times.

However, in the latest analysis, the trading resource The Kobeissi Letter has pointed out a glimmer of hope in the gloomy picture.

The report indicates that consumer sentiment regarding the labor market is signaling classic signs of a sharp increase in the unemployment rate in the near future — which could force the Fed to accelerate the pace of cutting down the whales.

"The assessment of the availability of current jobs has continuously decreased over the past three years. In previous economic cycles, this index was often an early indicator of rising unemployment rates," Kobeissi shared on platform X.

"This data clearly shows that the unemployment rate is likely to continue rising in the coming months. The labor market is showing many clear signs of weakness."

Data on consumer labor market sentiment | Source: The Kobeissi Letter/X## Risk assets lack the momentum to trigger volatility

Meanwhile, the price action of Bitcoin continues to breach the liquidity levels set for buying as it falls, a development that the famous trader TheKingfisher once warned could become a "trigger factor" for deeper drops if these thresholds are broken.

"A more noteworthy point is the large wall of short position liquidation orders just above, starting from the level of 108,900 USD and significantly extending up to the area of 109,000-109,200 USD and beyond," he noted.

"This creates a significant imbalance, favoring the liquidation of short positions."

BTC liquidation heatmap | Source: CoinGlassSince BTC/USD has been confined within the price range after the historical peak of $112,000, macro analysis from trading firm QCP Capital has indicated that the likelihood of a strong price breakout is very low without a suitable stimulus.

"The volatility in most asset classes continues to fall as the market enters a stagnant state due to a lack of important information and macroeconomic data," the company wrote in its latest newsletter sent to followers on the Telegram channel.

"Although the news cycle continues to unfold, the market seems increasingly immune to negative developments, ignoring headlines that might have previously triggered stronger reactions."

Mr. Giáo